Much has been made of the so-called “dog crate” condos sitting unsold in the city, with those properties largely built for rental purposes before demand nosedived. Few buyers are willing to take a gamble on those properties.
But other, larger condo types are attractive to buyers in the city, Jang said, particularly those who are purchasing for the first time.
“Even if they’re making pretty good money, they weren’t able to actually buy anything of decent value when condo prices were so high before,” he said. “Now they’re able to buy condos, let’s just say for $500,000. Before, that didn’t get you much. But now, that gets you something quite nice.”
Toronto market far from a big rebound
That’s not to say things are looking up if you’re a seller in Toronto’s housing market. Condo prices are expected to continue slipping in the months ahead, particularly with a flood of new inventory still scheduled to hit the market.
And some analysts believe borrowing conditions still need to improve before more buyers will be coaxed back into the market.